Reliance Industries Lays Off 42,000 Employees
Additionally, the company has decreased its hiring rate, recruiting 33% fewer new employees compared to the previous year
Reliance Industries, India's largest conglomerate, has announced an 11 per cent reduction in its workforce, leading to the layoff of 42,000 employees. According to Livemint, most of those affected were contract workers or part-time employees. Additionally, the company has decreased its hiring rate, recruiting 33 per cent fewer new employees compared to the previous year, with just 1.17 lakh new hires in the current fiscal year. While these changes might appear to be strategic business decisions, there could be deeper implications.
The significant reduction in workforce primarily impacted Reliance's retail division, which accounts for 60 per cent of the company’s total workforce. The retail division's headcount dropped from 2.45 lakh in FY23 to 2.07 lakh in FY24, raising concerns about the state of India's economy. Anupam Mittal, founder of Shaadi.com, described the situation as alarming for India’s job market, pointing out that the country already needs to create 8-10 million new jobs annually, and job cuts by major companies like Reliance could exacerbate the situation.
These drastic job cuts coincide with store closures and a slowdown in retail store expansion. In FY23, Reliance opened over 3,300 retail stores, but this number fell sharply in FY24, with only 800 new stores added, bringing the total to 18,836. The company’s telecom division also saw a workforce reduction, from 95,326 employees in FY23 to 90,067 in FY24.
While these moves may be aimed at improving business efficiency, they could also signal underlying economic issues in the country, particularly in sectors like retail that depend heavily on consumer spending and economic stability. It’s possible that Reliance has assessed market conditions or shifts in consumer behavior that have led to these strategic adjustments.
